The Future of Wellness: How Millennials and Gen Zers are Shaping the $2 Trillion Global Industry

To millennials and Gen Zers, wellness has become a daily, personalized practice rather than a set of occasional activities or purchases.

As this shift takes hold, it’s influencing the direction of the $2 trillion global wellness industry, which is expanding beyond its core categories. Even though younger demographics may be pushing the industry forward, older consumers, too, are becoming more interested in an expanding definition of wellness.

Key Insights from Future of Wellness Research

In our fourth year fielding our Future of Wellness research, which focuses on six dimensions of wellness—health, sleep, nutrition, fitness, appearance, and mindfulness—we surveyed more than 9,000 consumers across China, Germany, the United Kingdom, and the United States. Two big ideas stood out in this year’s research: Younger consumers are conceptualizing wellness in new ways, and wellness is showing up in new places.

Our latest findings reveal the ways in which younger consumers are redefining the landscape, the five consumer segments that make up today’s wellness customer base, and six subcategories poised to grow.

Youthful Spending Power in Wellness Industry

Wellness is more important to consumers than ever. In the United States alone, we estimate that it represents more than $500 billion in annual spend, growing at 4 to 5 percent each year. Meanwhile, 84 percent of US consumers say wellness is a “top” or “important” priority. Younger generations, especially Gen Zers and millennials, are increasingly prioritizing wellness, with nearly 30 percent in the US reporting prioritizing wellness “a lot more” compared with one year ago.

The burgeoning prioritization of wellness is translating into dollars spent, with Gen Zers and millennials driving more than 41 percent of annual wellness spend in the US. This shift in spending patterns indicates a significant opportunity for businesses to cater to the evolving wellness needs of younger consumers.

Changing Perspectives on Wellness

Gen Zers and millennials are redefining wellness by placing higher importance on areas such as sexual health, skin care, and mental well-being compared to older generations. Despite the growth of the wellness sector, consumers report unmet needs in areas such as cognitive health, mindfulness, and mental health, particularly among younger age groups.

There are also differences in how younger and older consumers spend across wellness categories. While younger consumers purchase a wider range of discretionary products, older generations tend to focus on essential health products. Businesses should consider these differences in consumer spending habits when developing wellness products and services.

Segmentation of Wellness Consumers

Our research identifies five distinct wellness consumer segments: maximalist optimizers, confident enthusiasts, health traditionalists, health strugglers, and wellness shirkers. Each segment has unique attitudes and priorities when it comes to health and wellness, presenting opportunities for businesses to target and cater to specific consumer groups.

For example, maximalist optimizers and confident enthusiasts are digitally savvy consumers who prioritize wellness, while health traditionalists focus on simplicity and practicality in their health routines. Understanding these segments can help businesses tailor their offerings to meet the diverse needs of wellness consumers.

Areas of Growth in the Wellness Industry

Functional nutrition, healthy aging, appearance and aesthetics, in-person wellness services, weight management, and mindfulness are identified as key areas of growth in the wellness industry. Businesses that focus on these trends and offer innovative solutions can capitalize on the evolving demands of wellness consumers.

Recommendations for Wellness Players

As wellness continues to evolve, businesses in the industry should focus on breaking barriers, emphasizing expertise, and delivering value to consumers. By creating integrative solutions, communicating scientific expertise, and providing value-driven products and services, wellness players can position themselves for success in a competitive market.

FAQ

Q: What are the key trends shaping the future of the wellness industry?

A: Key trends include the prioritization of wellness by younger generations, the expansion of wellness beyond core categories, and the emergence of new consumer segments with unique attitudes towards health and wellness.

Q: How can businesses in the wellness industry cater to the needs of different consumer segments?

A: By understanding the preferences and priorities of different consumer segments, businesses can tailor their products and services to meet the diverse needs of wellness consumers. This includes developing targeted marketing strategies and offering personalized solutions.

Conclusion

In conclusion, the future of the wellness industry is being shaped by the changing perspectives and priorities of millennials and Gen Zers. As younger generations drive growth and innovation in the industry, businesses must adapt to meet the evolving needs of wellness consumers. By focusing on segmentation, trends, and consumer preferences, wellness players can position themselves for success in a dynamic and competitive market.